A Curious New Cabinet

Tuesday, 29 January 2013

Here are some quick thoughts on today’s reshuffle of Sri Lanka’s Cabinet of Ministers, and bringing in some context to it.

Although most people thought that following the comprehensive victory by both the President and the UPFA in the last set of elections, the strong 2/3rds majority in Parliament will mean that the government will be strong and stable and can, for once, avoid having to pander and please politicians and coalition partners by creating an unfathomably large number of Ministerial positions. This lasted about a year or two, and then the country regressed back into its old ways. Today, 10 new ministers, two project ministers and six deputy ministers were appointed under an expanded cabinet – probably the biggest since the UPFA regime first entered in 2005.

Following today’s cabinet reshuffle Sri Lanka has got a very curious set of new Ministries. The first of which must surely be the new Ministry for Sugar Industries (to manage all of just 3-4 sugar plantations and processing facilities in all of the country). The second must surely be the new Ministry for Botanical Gardens and Public Recreation (probably the most wonderful Ministerial job in the country). Meanwhile a new Ministry for Wildlife Conservation has been created – which for some reason could not be incorporated under the existing Environment Ministry? Ironically, Sri Lanka seems to be setting a great example by gifting Rs. 400 million worth of contraband elephant tusks (from hundreds of poached African elephants) to Sri Lankan temples.

Energy seems to have assumed top priority in this new cabinet reshuffle as “energy” features in three of the new portfolios. Sri Lanka’s energy, particularly electricity, sector is constantly in disarray. But we now have a Ministry of Power and Energy, a Ministry of Technology, Research and Atomic Energy, and a Ministry of Environment and Renewable Energy. Surely this will then mean that in future we can eagerly await an era where 1) there will no longer be spectacular losses of the CEB and CPC burdening the public purse, 2) no more substandard fuel imports which damage thousands of motor vehicles, and 3) and end to the terribly unreliable electricity connectivity in many parts of the country.

Despite two responsibilities hitherto coming under the purview of the Ministry of Economic Development – investment promotion as well as botanical gardens – now taken out and set up separately (effectively somewhat shrinking the ministry), it’s curious that the number of ministers in this ministry have actually expanded. There are now THREE Deputy Ministers for Economic Development appointed in the new cabinet. This must also be a reflection of the expanded role for the Ministry likely to take shape soon with the setting up of the new gargantuan ‘Divineguma Development Department’.

Interestingly, Patali Champika Ranawaka’s removal from the Ministry of Power and Energy comes with curious timing – on the back of his ongoing tussle with Minister Amunugama (Dty Finance Minister) regarding suggestions by the latter that the CEB ought to be part-privatized in order to minimize operational losses.

Meanwhile, Segu Dawood takes over as the new Minister for Productivity Promotion. Sri Lanka had a Ministry for Productivity Promotion earlier as well, and it is laudable that we finally set one up, but I am curious to know whether this Ministry achieved at all. In fact, the severe lack of a coordinated productivity enhancement effort in Sri Lanka was highlighted just last week, by one of Sri Lanka’s forefathers of productivity.

One of the most crucial subject areas in post-war Sri Lanka – attracting foreign investment to our shores – has now rightly assumed a more prominent role once more, with the creation of a separate Ministry for Investment Promotion (like in late 1990s and early and mid-2000s) under Minister Lakshman Yapa Abeywardena. This comes amidst a shake up at the apex investment promotion agency, the Board of Investment, to which a new Director General was appointed just last week. Attracting more foreign investment is a critical part of the overall effort to raise the country’s investment ratio, without which we cannot expect to achieve faster growth.

Finally, I am curious to know what the newly appointed ‘Project Ministers’ will be responsible for. We now have two of them – one for Highways and one for Ports. Will the existing Ministry of Ports and Highways be scrapped, then?

What do you find curious about the new cabinet?